Canadian dollar drops to weakest close in six weeks

TORONTO (Reuters) - The Canadian dollar slipped to its
weakest close in six weeks against the U.S. dollar on Monday,
extending a slow slide driven by concerns about the health of
the economy of Canada's biggest trading partner.

Domestic bond prices rose on the back of a safe-haven bid
as concerns over the state of the financial industry had
investors buying relatively stable government debt.

The Canadian dollar closed at C$1.0230 to the U.S. dollar,
or 97.75 U.S. cents, down from C$1.0196 to the U.S. dollar, or
98.69 U.S. cents, at Friday's close.

The currency fell to a low of C$1.0245 against the
greenback during the session, its weakest since mid-June. It
has fallen 2.1 percent in the past five days, hampered by a
variety of factors, such as softer oil prices,
weaker-than-expected Canadian data, and some U.S. dollar
strength.

"It's been a bit of a dog day for the Canadian dollar all
around, said Shaun Osborne, chief currency strategist at TD
Securities.

The Canadian dollar ended down pretty much across the
board, more so against majors like the yen and the euro than
against the greenback, which was also hurt on the crosses.

The main factor in Monday's weakness was concern over the
U.S. economy, where Canada sends over 75 percent of its
exports, said Osborne.

"It's still very much the case that the Canadian cart is
hitched to the U.S."
Continued...